Things to know about PAN

Permanent Account Number (PAN) refers to a unique identification code that stores all data related to tax for a person/Company. PAN is issued by the Income Tax Department. The PAN is unique to an individual/ Entity and is valid across India

PAN is used as an important document for:

a. PAN card is an important proof for identification of tax payer while doing transaction of purchase or sale of assets.

b. PAN is used as an identification document for opening Bank Accounts in all Banks across India

c. For demat account opening which is done with any depository, or with a custodian of securities or any person with Securities Exchange Board of India (SEBI)

a. Any Indian Citizen/Companies/entities can apply for PAN card
b. Foreign citizens can also apply for PAN card subject to certain conditions

For Indian Citizens

• Voter’s ID card
• Passport
• Aadhar card
• Ration card having applicant photo
• Driving License
• Photo ID card
• Pensioner card
• Arm’s License

In case of a minor applicant, parents’/guardian’s proof of identity shall be considered as a proof of identity

PAN number is a ten character alphanumeric identification Number embedded in a PAN card. Every PAN number is unique in its nature depending upon the person’s status.

A typical PAN number is structured in a manner where the first five characters are letters in Uppercase, followed by four numerals and the last character is a letter of a constant nature

• The first three characters takes up a sequential form from AAA to ZZZ
• The fourth character identifies the status of the card holder. Each holder type is identified below
  A — Association of persons (AOP)
  B — Body of individuals (BOI)
  C — Company
  E – LLP (limited liability partnership)
  F — Firm
  G — Government
  H — HUF (Hindu undivided family)
  J — Artificial juridical person
  L — Local authority
  P — Individual (proprietor)
  T — Trust (AOP)
• The fifth character of the PAN is the first character of either
  • The surname or last name of the person in case of individual
  • The name of the entity based on the fourth character
• The last character is an alphabetic digit used as a check sum to verify the validity of that current code

You can apply for PAN card online via NSDL or UTITSL websites. For Indian citizens Form 49A is being used and for foreign citizens Form 49AA is applicable.

No, you cannot obtain PAN card for free. Charges around Rs.120 is applicable for Indian citizens and around Rs.1030 for foreign citizens.